Capsule on $ 1.8 billion Investment Project laid in Aktau
As part of a working visit to the Mangistau region, the Prime Minister Askar Mamin laid a capsule of a Gas-Chemical Complex for the production of methanol and olefins. The project for the construction of a Gas-Chemical Plant to process natural gas and methanol using specialized technologies is being implemented with the support of KAZAKH INVEST and the Ministry of Energy of the Republic of Kazakhstan. The initiator of the project is the Singapore-based company WestGasOil.
The project, with an investment of $ 1.8 billion, envisages the processing of gas into methanol and the subsequent processing of methanol into olefins. The plant will be located on the territory of the SEZ “Seaport Aktau”. According to investors, this will greatly simplify access to infrastructure and transportation of the products. The construction of production facilities is planned to be carried out within two years and, in the third year of operation, reach its design capacity.
It is planned that after reaching full capacity, the project will annually produce 1,800 thousand tons of AA grade methanol and about 600 thousand tons of olefins, which are mainly used in production of plastic, polypropylene and polyethylene.
According to KAZAKH INVEST, this project will allow the efficient use of natural gas and will contribute to the development of the manufacturing industry within the framework of governmental tasks to accelerate the diversification of the country's economy.
“The foundation of this project with Singaporean investors was made in May this year, when a Memorandum was signed between the Akimat of Mangistau Oblast and Singaporean company WestGasOil as part of the II Annual Round table on Global Investments KGIR-2019. After 6 months, a capsule is laid to start the construction of a Methanol-to-Olefins Plant. This is a high assessment of the investment climate and the confidence of foreign businessmen towards our country. I believe that this complex will become a driver for the development of the gas chemical industry in our region, with further production of more than 40 types of products” - said Aydin Tumyshev, Director of KAZAKH INVEST’s office in Mangystau region.
In turn, the representatives of the foreign company noted the favorable investment climate in Kazakhstan, including State Support Measures and the process of supporting Investment Projects.
“I would like to express my gratitude to the Government and the Ministry of Energy of the Republic of Kazakhstan, as well as the national company KAZAKH INVEST, the representatives of local executive agencies and Development Institutions for comprehensive support in our investment project. I wish to note that in Kazakhstan, understanding has been established between representatives of government bodies and business interests. We hope for a successful implementation of the facility and further fruitful bilateral cooperation” - said Lim Ren Jie, Executive Director of WestGasOil Pte Ltd.
The project provides for a high socio-economic effect, including an increase in tax revenues to the budget, provision of 650 permanent jobs and 4,000 jobs for the construction period. In general, the construction of the complex opens up new opportunities for the development of small and medium-sized businesses in the region.